Question
Your financial advisor offers you two different investment plans. Plan X pays an $8,000 per year in perpetuity. Plan Y is a 10 year, $20,000
Your financial advisor offers you two different investment plans. Plan X pays an $8,000 per year in perpetuity. Plan Y is a 10 year, $20,000 annual annuity. At what discount rate (k) would you be indifferent between the two plans?
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Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
6th Edition
0321113624, 978-0321113627
